China's official manufacturing purchasing managers' index (PMI) fell slightly to 50.3 in April from 50.4 the previous month, though it exceeded expectations. New export orders and imports expanded for the first time since early 2024, but softer domestic activity pushed the non-manufacturing PMI into contraction. Price pressures remained in expansionary territory, indicating ongoing reflation.
China's manufacturing PMI stood at 50.3 for April, a marginal decline from March's 50.4, yet it outperformed forecasts, according to data analyzed by Lynn Song, chief economist for Greater China at Seeking Alpha. This stability reflects resilience in the sector despite broader economic challenges. New export orders and imports returned to expansionary levels above 50 for the first time since early 2024, signaling improved external demand and trade activity. The non-manufacturing PMI, however, slipped back into contraction territory below 50, driven by weaker domestic activity. This divergence highlights persistent softness in internal consumption even as external factors provide some support. Price pressures continued firmly in expansionary territory, with indicators above 50, which suggests that China's reflation process is ongoing. Officials have not yet commented publicly on the April figures.
